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Figure 14-4 Suppose a Firm Operating in a Competitive Market Has the Has

Question 265

Multiple Choice

Figure 14-4
Suppose a firm operating in a competitive market has the following cost curves: Figure 14-4 Suppose a firm operating in a competitive market has the following cost curves: -Refer to Figure 14-4. When price falls from P3 to P1, the firm finds that it A) decreases its fixed costs. B) should produce Q1 units of output. C) should produce Q3 units of output. D) should shut down immediately.
-Refer to Figure 14-4. When price falls from P3 to P1, the firm finds that it


A) decreases its fixed costs.
B) should produce Q1 units of output.
C) should produce Q3 units of output.
D) should shut down immediately.

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